Report from the 5th Webinar on
My Favorite Linked Benefit Products
and How Not to Sell Them
Webinar #5 started with my presentation listing several products that link long-term care insurance to life insurance:
- EquiTrust WealthMax
- Lincoln MoneyGuard
- Mass Mutual Care Choice One
- Mass Mutual LTC Access Rider
- Minnesota Life (can do annual premiums for life)
- Nationwide CareMatters
- OneAmerica Asset-Care
- Pacific Life
Matt Valente from Lincoln Financial went over the Lincoln MoneyGuard product with sales ideas for four quadrants of prospects. Matt Clark with OneAmerica specifically highlighted Asset-Care III that allows qualified money to go into an annuity then to a 20-pay life until it is paid up and all distributions for LTC are tax-free. He also highlighted Asset-Care IV that allows annual premium forever or with a limited pay up to 20 years.
I then came back and shared my formula for determining the benefit needed in the future and how to achieve it with this type of product. My pet peeve which is reflected in the title is the "Give me $100,000 and I'll give you $300,000 for long-term care...or $400K or $500K or $600K". The pool is irrelevant if the client can't make up the difference between the daily or monthly benefit paid out at claim time and the charge. There are various ways to account for inflation so I shared five cases I've had the honor or working on lately:
- 56 year old woman who wants a significant death benefit to leave to a cancer foundation set up for her 24 year old daughter whom she lost two years ago but needs a four year $15-$17,000 monthly benefit for LTC when she's 75-80. (Pacific Life)
- 64 year old female who wants $10K monthly benefit now in tax-free cash and will have $14K for home care (60 months) and $23K for facility care (36 months) at age 80 (EquiTrust WealthMax)
- 48 year old female doctor who wants a 20-pay plan that pays $13,120 monthly for 25 months then jumps to $38,000 in 30 years for another 25 months and $48K in 40 years (Asset-Care IV)
- Age 33 HIV positive male who can pay $327 a month until age 63 and have at least half a million and possibly much more in his 70s that he can tap up to 80% in tax-free cash to pay for ANYTHING (Lincoln WealthAdvantage Indexed UL)
- 40 year old starting off with $400,000 whole life with an LTC rider for negligible premium that allows inflation growth for 25 years starting at age 61. (Mass Mutual LTC Access Rider) The full case study is in my book Protecting Your Family with Long-Term Care Insurance on pp. 53-56 and explains how to add to it and take care of his spouse with a traditional LTCi product a few years later.
We also went over the difference between 7702B and 101(g) policies.
I ended the webinar by directing you to my online store to especially point you to my ABC books. There's a section that covers using combination life or annuity products which works really well for the introduction of any type of combo product to your clients. Financial professionals have ordered thousands of these because they provide a foundation of knowledge that definitely shortens the sales cycle. I know that from using them personally (more on that in the session on internet selling on Aug. 5th) and from what agents have told me. They are now available in print, with an audio CD with your voice branding it, and in an ebook branded with your contact info.
This week we will talk about internet selling with one of my favorite people, Scott Olson, who has been doing internet selling practically since the birth of the internet! Scott and I will split the time as I also share with you how I'm doing it these days. Last week, I sold $400,000 in fixed-index annuities, $10,648 in a 20 pay asset-based product and $15,034 traditional LTCi premium. God is good! One of those cases was covering part of the need with a $150K FIA and a $90 daily benefit traditional policy. All of this was sold over the internet, and what is interesting, Scott and I have totally different ways to do this. I think you will be intrigued and challenged with new ideas. PLEASE come prepared with questions so we can have an interactive discussion!
Remember, if you are just joining us, you can buy the webinars you have missed as they are all being recorded!! The handouts for each webinar are also posted on the page with the recordings which is here. Or if you bought some but not all, you can add to your order by emailing Lawrence@ltcconsultants.com and he will adjust your payments if necessary with the volume discount.
|$49 each for 1-3
|$39 each for 4-6
|$29 each for 7-9
To help you decide, the complete list is below with session descriptions this time. You will see they are every Wednesday from 1:45 - 3:00 CST, through August 26th. IMPORTANT: Please note that the first 15 minutes is great music just like I've always offered in my live seminars. The actual presentation starts at 2:00 p.m. CST with interactive Q&A at the end. I'll call on you and let you ask your question yourself whenever possible.
||How to convert term life insurance into guaranteed issue LTC insurance
|Historically, the objection to traditional long-term care insurance has been the "use it or lose it" issue as typical return-of-premium riders have been expensive. People are concerned they will die before ever needing long-term care; or will use only part of their benefits. There's also the problem of people becoming uninsurable by the time they consider LTCI, often in their 60s or older. Living Care Extension is a program enabling your client to use their existing term life insurance policy in order to create a highly effective alternative to long term care insurance, and by doing so, address both issues.
||How to sell long-term care insurance that is affordable in today's market/Finding money with High Deductible Plan F with a reserve annuity
and Gary Owen
(Premier LTC Brokerage)
|How can LTC insurance possibly be affordable now that most companies are gender rating and now that nursing homes cost $220-$250 per day? ($350-$400 higher cost areas) In addition to my own ideas, our guest speakers will expose you to ways to help more people by finding money for LTCi AND make the benefits more affordable.
||How to sell LTC insurance to companies of all sizes
|How many times have you heard we need to sell LTCi to younger people? Why do robbers rob banks? Because that's where the money is! Healthy younger prospects are at WORK. There are only three companies that offer limited underwriting for worksite sales. Hear what they are looking for and I'll share my top ideas for double digit participation.
||Equity index annuities to fund LTC, with and without underwriting
|This session will offer double the content for your money. Our guest speakers will comment on why baby boomers are moving millions of dollars to equity index annuities to prevent their savings from another stock market drastic drop and how they can help solve the LTC planning need as well. I went in this direction to help people who couldn't qualify for traditional or combo LTCi and have learned a TON about the entire picture of EIAs.
||My favorite linked benefit products and how not to sell them
|My dream for this session is to get away from the popular way of selling combo plans of "Give me $100K and I'll give you $300K for LTC" with no thought about what the policy will pay out per month when care is needed.
||How to successfully do internet selling, including technology tips
|Most of you are probably selling online. I've asked my friend Scott Olson to join me as he made his first internet sell in 1999. Lawrence Vivenzio is the wind beneath my wings in my own internet selling and it won't take you long to find out why!
||Selling home care services to people who can't qualify for LTC insurance/The latest with using reverse mortgages to fund LTC and LTC insurance and how to work with the non-cross selling law
|Yes, you can still help people who are totally uninsurable but don't have the savings to do an annuity without medical underwriting. You can help them stay home as long as possible with home are packages and/or a reverse mortgage. Our guest speakers will open your eyes to the latest updates on both these topics. After listening to them, I learned I didn't "know it all"!
||My formula for analyzing a rate increase and retaining the client, plus the regulatory process of filing a rate increase and the latest on what the NAIC is doing about rate increases
|I am so proud to have my dear friend Cheryl Bush, SVP of Operations at MedAmerica and one of the smartest people I know, tell us what's really going on with rate increase regulatory activity. I'll be sharing my formula for helping clients analyze a rate increase. Chris Sitek will chime in about how he uses my formula that way and in annual reviews to retain clients.
||The latest research published in 2014 on benefits actually being paid utilizing claims studies/Projections on claim duration (get ready for a few surprises)
(Long-Term Care Group)
|We should call this session "Where the Rubber Hits the Road" because that's what paying claims is all about. LifePlans and Long-Term Care Group will share the latest research about the value of LTC insurance and a peek into the future with new projections on claim duration.